Sterling extends losses as UK media say PM preparing to call election

LONDON: Sterling extended its slide on Monday after British media said Prime Minister Boris Johnson had called an emergency cabinet meeting and was preparing to call a general election.

The pound, already lower during the European trading session, fell further to hit $1.2053, down 0.9% on the day and at its lowest since Aug. 15.

The BBC said Johnson was considering an early general election if lawmakers opposed to his Brexit plans block his proposals this week. The Financial Times said Johnson had called an emergency cabinet meeting for later on Monday - adding to expectations of an election announcement.

Against the euro the British currency dropped to 90.97 pence , 0.6% lower on the day.